RBI adds 19 unauthorized forex trading platforms to alert list

Last week, the Reserve Bank of India updated the alert list of unauthorized forex trading platforms and added 19 new entities, including BlackBull, Admiral Market, Easy Markets, Enclave FX, Finowiz Fintech, FX SmartBull, Fx Tray Market, Forex4you, Growing Capital Services, HF Markets, HYCM Capital Markets, JGCFX, PU Prime, Real Gold Capital, TNFX, Ya Markets, Gate Trade, Just Markets, and GoDo FX. 

The RBI took a similar action in February 2023 when the Central Bank updated its list of unauthorized forex websites and apps that included 34 forex trading platforms. The updated list consisted of 48 names, including AvaTrade, Pepperstone, FP Markets, Pocket Option, and Quotex which appeared to be unauthorized.

The February 2023 RBI alert list update took the forex trading community in India by surprise as the number of unauthorized trading platforms increased to 48.

What is the RBI’s alert list?

Currently, there are a total of 75 unauthorized forex trading platforms in the alert list that contain entities that are not authorized to provide forex services under the Foreign Exchange Management Act (FEMA) 1999, nor are they allowed to operate ETP (electronic trading platform) for forex transactions under the Reserve Bank’s Electronic Trading Platforms Directions, 2018. The RBI list also includes the names of websites, platforms, and entities that promote unauthorized ETPs or entities, including those through advertisements for unauthorized entities. It must be noted that entities not included in the alert list must not be assumed to be RBI-authorized.

Why does the RBI publish an alert list?

The Reserve Bank of India (RBI) releases the Alerts List with the intention of discouraging the dissemination of unauthorized information through platforms, websites, and entities, including advertisements for ETPs that purport to offer forex services to domestic investors and traders. The RBI maintains and routinely updates this alert list to inform the public about unauthorized foreign exchange trading platforms, enabling them to abstain from conducting forex transactions on such platforms.

What are the risks of trading with an unauthorized forex trading platform?

Engaging in foreign exchange transactions through an unauthorized forex trading platform may result in legal ramifications. Furthermore, the past few months have witnessed a number of instances of foreign exchange scams in which fraudsters enticed the general public with the promise of enormous returns on investment, only to leave them with enormous losses. 

The regulator has sent several warnings to customers, advising them to avoid depositing or transmitting money for forex transactions on unauthorized platforms or carrying out forex transactions on unauthorized electronic trading platforms. To make a safe forex trade, investors can check out the best forex brokers in India list and make profitable legal forex trades with peace of mind.

How to avoid trading with an unauthorized forex trading platform?

It is advisable for investors to remain informed about unauthorized forex trading platforms by subscribing to the RBI’s alert list, which is frequently updated on the central bank’s official website. Furthermore, the regulator discourages the general public from engaging in unauthorized foreign exchange transactions, as well as from depositing or remitting funds. Notably, although forex trading is not illegal in India, it is strictly regulated, and participants must conduct business through authorized, regulated, and legal forex platforms to avoid perpetrating a punishable offense.